New York Consolidated Laws, Private Housing Finance Law - PVH § 552. Sale or lease of projects

1. An authority or a municipality may grant, sell, lease or convey a project, or part thereof, either prior to, at the date of, or subsequent to the physical completion thereof, to a housing company, without public bidding, public sale or public offering, and a housing company may accept, purchase, lease or otherwise acquire such project or part thereof upon such terms and conditions as may be agreed upon by such authority or municipality and such housing company, and provided that such sale or lease and the terms and conditions thereof shall be subject (a) in the case of a federally-aided project, to the approval of the federal government;  (b) in the case of a state-aided project, to the approval of the commissioner;  or (c) in the case of a municipally-aided project, to the approval of the supervising agency and the local legislative body.  In the event of a grant, sale, lease or conveyance of a project prior to the physical completion thereof, the authority or municipality may agree to complete construction and development of such project.

2. The purchase price to be paid on or prior to the date of transfer of title, or upon the physical completion of the project, shall not be less than the amount required by the municipality or authority to pay and retire, or to make provision for the payment and retirement of, all bonds, notes and other obligations issued by the municipality or authority to finance the project cost.

3. An authority or a municipality which has granted, sold, leased or conveyed a project or part thereof to a housing company may reenter all or part of such project in the manner provided in section five hundred four of this chapter.

4. The sale or lease of a project to a housing company may be conditioned on the inclusion in the certificate of incorporation of such housing company of a provision that no dividends or interest be paid on all or any issues of stock or debentures.

5. The parties to any lease or conveyance effecting the transfer of a publicly-assisted project to a housing company, executed prior to the effective date hereof, may amend such lease or conveyance in accordance with the provisions of this article.